When sending mail, and SMTP Authentication fails, it is
treated as if it was successful.
My setup is configured to use the 'LOGIN' method.
around line 106 of class_smtp.php it should throw an
exception, which it is, but somewhere between that and
lines 210 and 217 of send.php this exception is being lost.
The actual failure (incorrect password) is caused by...
another bug which will be filed shortly.
Logged In: YES
user_id=529507
Fixed in CVS.
It'll be included in next release.
But you can download daily snapshots at :
http://nocc.sourceforge.net/download/
Thanks for the bug report.